DepSecDef memorandum, Implementation of Conference Oversight ...

DEPUTY SECRETARY OF DEFENSE1010 DEFENSE PENTAGONWASHINGTON , DC 20301-1010SEP 2 9 2012MEMORANDUM FOR: SEE DISTRIBUTIONSUBJECT: Implementation of Conference Oversight Requirements and Delegation ofConference Approval AuthorityOn May 11,2012, the Office ofManagement and Budget (OMB) issued a memorandumto promote further efficiency and cost consciousness in the Federal government's operations.OMB 's memorandum established new requirements in a number of areas, including travel andconferences. This direction was initially implemented by a Deputy Secretary of Defensememorandum dated June 3, 2012. The sections of that memorandum that deal with conferencesare hereby cancelled. Even with the Department' s steadfast efforts to be an excellent steward oftaxpayer dollars and our continuing implementation of the Secretary' s Efficiencies Initiative andPresident Obama's Campaign to Cut Waste, we must do more to ensure that conference policiesand controls are in place to prevent waste, duplication, and abuse. OMB's memorandum requiresspecific actions by each executive department and agency to increase scrutiny of conferencespending and elevate approval authority for conference hosting and attendance. The intent ofthese requirements is not to negatively impact operations critical to the day-to-day execution ofour national security mission, but rather to ensure that conferences the Department sponsors areexecuted in a responsible manner and that we are prudent when sending personnel to conferenceshosted by others, to include validating that a conference is a necessary and cost-effective way toachieve a particular mission objective.In recognition of DoD's unique size and complexity, I am implementing a tiered approvalstructure to assist me in carrying out my conference oversight responsibilities. This structurebuilds upon the existing foundation of trust and accountability already in place for senior civilianand military leaders, who have responsibility for billions of taxpayer dollars and hundreds ofthousands of our service members lives. It calls on them to assist with the proper administrationand oversight of all conferences, including conferences that the Department hosts and those thatDoD personnel attend. While the Secretary and I remain accountable for all of the Department' sconference related activities, a small set of the Department's senior leaders will have the authorityto approve and grant waivers in exceptional circumstances, as required by the OMB memo, forany conference with a total cost to the Department above $500,000. These officials will also actas the approval authorities for all conferences, regardless of total cost, that involve a cosponsorshiprelationship or no-cost contract with a non-Federal entity and/or a request forapproval of spousal travel- as well as for all conferences hosted by a non-DoD entity where thetotal cost of attendance to their DoD Component exceeds $20,000. Additionally, these seniorleaders will have the ability to further delegate, in writing, approval authority to additionalidentified officials for any conference that DoD hosts with a total cost to DoD between $100,000and $500,000. These same senior leaders will also have the ability to delegate approval authority,in writing, for conferences that the DoD hosts with a total cost below $100,000, as well as for allconferences hosted by a non-DoD entity where the total cost of attendance to their Component is$20,000 or below, to appropriate General Officers/Flag Officers or members of the Senior

Executive Service in their organization. Attachment 1 provides a detailed list of these authorizedapproval authorities and my expectations for them. Additional delegation is not permitted.Authorized senior leaders may choose not to extend delegation to the extent authorized by thismemorandum. In the case of a conference that is considered to be particularly high visibility orexhibits unusual circumstances, DoD Components should inform the Deputy Chief ManagementOfficer of the circumstances of the conference and the DoD Component's approval decision. TheDeputy Chief Management Officer will assist in establishing and executing the necessaryprocesses to implement this guidance and will issue additional implementing guidance asnecessary.For the purpose of this guidance, a conference will be defined by the general definition inthe Joint Travel Regulations (JTR) and Joint Federal Travel Regulations, with certain exemptions.These exemptions account for the fact that the JTR's definition encompasses many types of traveland gatherings that are essential parts of the day-to-day operations of the Department's businessand would be understood by the American taxpayer as not being the type of conference thatwarrants enhanced scrutiny. Attachment 2 provides this detailed exemptions list, as well asadditional information to assist in determining whether particular activities qualify as conferencessubject to this guidance.Attachment 3 provides guidance regarding the calculation of conference costs.Entertainment-related expenses are expressly prohibited as part of DoD conferences.The Secretary and I will maintain visibility and accountability through Componentreporting on at least a quarterly basis; annual and quarterly reporting requirements are describedin Attachment 4.Finally, it is my intent that the Department continue to utilize existing tools, such as theDefense Travel System and the Cost Assessment and Program Evaluation cost calculators forhosting and attending events, modified as necessary, to execute this guidance to the greatestextent possible. The Deputy Chief Management Officer will assist in ensuring that the necessarymodifications are made to existing tools and new tools are developed as needed.My point of contact for this issue is the Honorable Elizabeth McGrath, Deputy ChiefManagement Officer, at elizabeth.mcgrath@osd.mil or 703-614-8888.C!Ltf.~tAttachments:As stated2

DISTRIBUTION:SECRETARIES OF THE MILITARY DEPARTMENTSCHAIRMAN OF THE JOINT CHIEFS OF STAFFUNDER SECRETARIES OF DEFENSEDEPUTY CHIEF MANAGEMENT OFFICERCOMMANDERS OF THE COMBATANT COMMANDSCHIEF OF THE NATIONAL GUARD BUREAUDIRECTOR, COST ASSESSMENT AND PROGRAM EVALUATIONDIRECTOR, OPERATIONAL TEST AND EVALUATIONGENERAL COUNSEL OF THE DEPARTMENT OF DEFENSEINSPECTOR GENERAL OF THE DEPARTMENT OF DEFENSEASSISTANT SECRETARIES OF DEFENSEDEPARTMENT OF DEFENSE CHIEF INFORMATION OFFICERASSISTANTS TO THE SECRETARY OF DEFENSEDIRECTOR, ADMINISTRATION AND MANAGEMENTDIRECTOR, NET ASSESSMENTDIRECTORS OF THE DEFENSE AGENCIESDIRECTORS OF THE DOD FIELD ACTIVITIES3

ATTACHMENT 1RESPONSIBILITIES1. SECRETARY AND DEPUTY SECRETARY OF DEFENSE. The Secretary and DeputySecretary of Defense are accountable for all of the Department's conference related activities.They will oversee DoD's conference policies and controls and maintain visibility andaccountability for the conduct of conferences hosted by the Department and attended byDepartment employees through Component reporting on at least a quarterly basis and escalationprocedures for unusual circumstances.2. APPROVAL AUTHORITIES. Approval authorities must ensure compliance with allapplicable law and policy in making their authorizations and therefore may not approve aconference without coordination with appropriate legal counsel. Approval authorities must alsomaintain electronic records of documentation used in making their decisions. Additionally,approval authorities must sign a waiver/approval memorandum for each conference approved andmaintain electronic copies of these memoranda. If, as the date of the conference approaches, itbecomes apparent that its cost will exceed the estimated cost and breach the next higher approvalthreshold, approval must be obtained from the higher level approval authority as soon as possible.a. Conference alternatives. When making conference approval decisions, approvalauthorities must confirm that physical co location of DoD employees in a conference setting isnecessary and cost-effective and consider alternative means of delivering the relevantinformation, including usage of remote collaboration tools (e.g., teleconferencing,videoconferencing, webinars, online sharing applications) and other real-time communicationmethods that would mitigate the need for physical co location of DoD employees. Whiledeterminations should be made on a case-by-case basis, there are many circumstances where theproliferation of these tools and technologies may make physical colocation unnecessary, and suchcircumstances warrant increased scrutiny before moving forward with a conference. Examplescould include conferences designed to provide professional development needed to keep skillscurrent for human resources, accounting, procurement, or other government professionals. Bycontrast, there may be limited circumstances where physical colocation remains necessary, suchas bringing together law enforcement officials to conduct practical training on how to examine acrime scene, or conducting hands-on analysis of scientific research. However, approvalauthorities should begin their reviews by presuming that physical co location as part of aconference is not required in the majority of cases.4

. Prohibited conference expenses. Entertainment-related expenses are expresslyprohibited as part of DoD conferences, and approval authorities must ensure that funds, includingthose paid through travel disbursements or conference fees, are not used to pay such expenses.Illustrative examples of entertainment-related expenses that are prohibited include paying formotivational speakers (as contrasted to speakers with specific subject-matter expertise in the topicof the conference), hiring musicians or other entertainers to perform at conferences, procuringextraneous promotional items, decorations, or other goods and services for participants that areunrelated to the purpose of the conference, procuring tickets to recreational activities outside ofthe conference setting, or using funds to produce non-substantive audio/visual materials.Common sense and good judgment must be used throughout the conference planning process. Ifthere is any doubt as to the appropriateness of certain expenses, coordinate with appropriateofficials, including legal counsel.c. Jointly hosted conferences. In the case where more than one DoD Component ishosting a conference jointly, those Components should designate one of the Components to obtainapproval for the conference through their Component's appropriate approval authority on behalfof the entire Department.d. Escalation circumstances. All conferences, regardless of dollar amount, that involve aco-sponsorship relationship or no-cost contract (or other similar arrangement such as aMemorandum of Understanding) with a non-Federal entity and/or a request for approval ofspousal travel- as well as all conferences hosted by a non-DoD entity where the total cost ofattendance to a DoD Component exceeds $20,000- must be approved by the appropriateapproval authorities listed in section 2(f).In many cases, multiple DoD Components will send personnel to the same non-DoDentity hosted conference. Each Component will be responsible for approving their personnelthrough the appropriate approval authority in section 2(f) ifthe total cost of attendance to theComponent exceeds $20,000, or through an appropriate General Officer/Flag Officer or memberof the Senior Executive Service if the total cost of attendance to the Component is $20,000 orbelow and if so delegated under section 2(h). This will result in multiple approval memos for thesame conference, one for each Component sending personnel. As the Department improves itsability to more effectively aggregate DoD-wide participation in non-DoD entity hostedconferences prior to their taking place, the Deputy Chief Management Officer may designateexecutive agents to act as approval authorities for specific conferences and authorize the furtherdelegation of approval authority for non-Federal entity hosted conferences as appropriate.In the case of a conference that is considered to be particularly high visibility or exhibitsunusual circumstances, DoD Components should inform the Deputy Chief Management Officerofthe circumstances ofthe conference and the DoD Component' s approval decision.5

e. Approval timing. Organizations should not finalize conference plans or make anycommitments to vendors or hotels that obligate the government to pay appropriated funds untilthe requisite approval from the appropriate approval authority has been obtained. This includescommitments addressing costs if a conference is cancelled or where DoD participation may needto be withdrawn. Further, DoD entities should not enter into a co-sponsorship relationship, nocostcontract, or other arrangement with a non-Federal entity until the requisite approval has beenobtained. Since this approval will normally occur early in the conference planning stages, theapproval authority shall exercise continuing oversight of the conferences as necessary to ensurethat the entire conference is being carried out in a manner that is fully consistent with thisguidance.f. Conferences over $500,000. For conferences that the Department hosts with a totalcost in excess of $500,000, the officials designated below are authorized to act as approvalauthorities without further delegation. These officials will also act as the approval authorities forall conferences, regardless of total cost, that involve a co-sponsorship relationship or no-costcontract with a non-Federal entity and/or a request for approval of spousal travel - as well as forall conferences hosted by a non-DoD entity where the total cost of attendance to their DoDComponent exceeds $20, 000.(1) For conferences hosted by or with attendees from the Department of the Army:(a) Secretary of the Army(b) Under Secretary ofthe Army(2) For conferences hosted by or with attendees from the Department of the Navy:(a) Secretary of the Navy(b) Under Secretary ofthe NavyForce:(3) For conferences hosted by or with attendees from the Department ofthe Air(a) Secretary of the Air Force(b) Under Secretary of the Air Force(4) For conferences hosted by or with attendees from the National Guard Bureauthat are joint Army National Guard and Air National Guard conferences:(a) Chief, National Guard Bureau6

(5) For conferences hosted by or with attendees from the Office of the Secretaryof Defense and Defense Agencies and Field Activities that do not report to one of the UnderSecretaries of Defense:(a) Deputy Chief Management Officer(6) For conferences hosted by or with attendees from Defense Agencies and FieldActivities that report to one of the Under Secretaries of Defense, the following officials mayapprove conferences for those organizations under their purview:(a) Under Secretary of Defense (Acquisition, Technology & Logistics)(b) Under Secretary of Defense (Policy)(c) Under Secretary of Defense (Comptroller)(d) Under Secretary of Defense (Personnel & Readiness)(e) Under Secretary ofDefense (Intelligence)(7) For conferences hosted by or with attendees from the Joint Chiefs of Staff:(a) Director, Joint Staff(8) For conferences hosted by or with attendees from the Combatant Commands:(a) Commander, US Africa Command(b) Commander, US Central Command(c) Commander, US European Command(d) Commander, US Northern Command(e) Commander, US Pacific Command(f) Commander, US Southern Command(g) Commander, US Special Operations Command(h) Commander, US Strategic Command(i) Commander, US Transportation Commandg. Conferences between $100,000 and $500,000. For conferences that the Departmenthosts with a total cost between $100,000 and $500,000, the officials indicated in section 2(f) maydelegate approval authority to the officials below. Delegation must be granted in writing. Nofurther delegation is permitted.(1) For conferences hosted by the Department of the Army:7

(a) Assistant Secretary of the Army (Acquisition, Logistics, andTechnology)(b) Assistant Secretary ofthe Army (Civil Works)(c) Assistant Secretary of the Army (Financial Management andComptroller)(d) Assistant Secretary ofthe Army (Installations and Environment)(e) Assistant Secretary of the Army (Manpower and Reserve Affairs)(f) Army General Counsel(g) Commander, US Army Forces Command(h) Commander, US Army Training and Doctrine Command(i) Commander, US Army Materiel CommandG) Director, Army National Guard(k) Commander, US Army Reserve Command(1) Administrative Assistant to the Secretary of the Army(2) For conferences hosted by the Department of the Navy:(a) Assistant Secretary of the Navy, Research, Development & Acquisition(b) Assistant Secretary ofthe Navy, Manpower & Reserve Affairs(c) Assistant Secretary of the Navy, Financial Management & Comptroller(d) Assistant Secretary ofthe Navy, Energy, Installations & Environment(e) General Counsel to the Department ofthe Navy(f) Assistant for Administration to the Secretary of the Navy(g) Director of the Navy Staff(h) Director of the Marine Corps Staff(3) For conferences hosted by the Department of the Air Force:(a) Vice Commander, Air Combat Command(b) Vice Commander, Pacific Air Forces(c) Vice Commander, United States Air Forces in Europe(d) Vice Commander, Air Force Special Operations Command(e) Vice Commander, Air Education and Training Command(f) Vice Commander, Air Mobility Command(g) Vice Commander, Air Force Global Strike Command(h) Vice Commander, Air Force Materiel Command(i) Vice Commander, Air Force Reserve Command(j) Vice Commander, Air Force Space Command(k) Director, Air National Guard(1) Superintendent, United States Air Force Academy8

(m)Commander, Air Force Operational Test and Evaluation Center(n) Administrative Assistant to the Secretary of the Air Force(4) For conferences hosted by the National Guard Bureau that are joint ArmyNational Guard and Air National Guard conferences:(a) Vice Chief, National Guard Bureau (For Joint ARNG and ANG Only)(5) For conferences hosted by the Office of the Secretary of Defense:(a) Under Secretary of Defense (Acquisition, Technology & Logistics)(b) Principal Deputy Under Secretary of Defense (Acquisition, Technology& Logistics)(c) Under Secretary ofDefense (Policy)(d) Principal Deputy Under Secretary ofDefense (Policy)(e) Under Secretary of Defense (Comptroller)(f) Principal Deputy Under Secretary of Defense (Comptroller)(g) Under Secretary of Defense (Personnel & Readiness)(h) Principal Deputy Under Secretary of Defense (Personnel & Readiness)(i) Under Secretary of Defense (Intelligence)G) Principal Deputy Under Secretary ofDefense (Intelligence)(k) Deputy Chief Management Officer(1) Assistant Deputy Chief Management Officer(m)Assistant Secretary of Defense (Public Affairs)(n) Assistant Secretary of Defense (Legislative Affairs)( o) DoD Chief Information Officer(p) Director, Cost Assessment and Program Evaluation(q) Director, Administration & Management(r) Director, Net Assessment(s) Director, Operational Test & Evaluation(t) DoD General Counsel(u) DoD Inspector General(6) For conferences hosted by the Defense Agencies and Field Activities:(a) Director, DARPA(b) Director, DeCA(c) Director, DCAA(d) Director, DCMA(e) Director, DFAS9

(f) Director, DISA(g) Director, DIA(h) Director, DLSA(i) Director, DLAG) Director, DSCA(k) Director, DSS(1) Director, DTRA(m) Director, MDA(n) Director, NGA(o) Director, NRO(p) Director, NSA(q) Director, PFPA(r) Director, DMA(s) Director, DPMO(t) Director, DTIC(u) Director, DTSA(v) Director, DoDEA(w) Director, DoDHRA(x) Director, TRMC(y) Director, TMA( z) Director, 0 EA(aa) Director, WHS(7) For conferences hosted by the Joint Chiefs of Staff:(a) Vice Director, Joint Staff(8) For conferences hosted by the Combatant Commands:(a) Deputy Commander, US Africa Command(b) Deputy Commander, US Central Command(c) Deputy Commander, US European Command(d) Deputy Commander, US Northern Command(e) Deputy Commander, US Pacific Command(f) Deputy Commander, US Southern Command(g) Deputy Commander, US Special Operations Command(h) Deputy Commander, US Strategic Command(i) Deputy Commander, US Transportation Command10

h. Conferences below $100,000. For conferences that the Department hosts with a totalcost below $100,000, as well as for all conferences hosted by a non-DoD entity where the totalcost of attendance to their DoD Component is $20,000 or below, the officials indicated in section2(f) may delegate approval authority at their discretion to appropriate General Officers/FlagOfficers/Senior Executive Service members in their organization. Delegation must be granted inwriting. No further delegation is permitted.11

ATTACHMENT 2DETERMINATION OF A CONFERENCE1. General Definition. "Conference" is defined in the Federal Travel Regulation, Joint FederalTravel Regulations, and Joint Travel Regulations as, "(a] meeting, retreat, seminar, symposium,or event that involves attendee travel. The term 'conference' also applies to training activities thatare considered to be conferences under 5 CFR 410.404." However, this definition is only astarting point. What constitutes a conference for the purpose of this guidance is a fact-baseddetermination based on an evaluation of the criteria established in this attachment.2. Additional Indicia of Conferences. Conferences subject to this guidance are also often referredto by names other than "conference." Other common terms used include conventions,expositions, symposiums, seminars, workshops, or exhibitions. They typically involve topicalmatters of interest to, and the participation of, multiple agencies and/or nongovernmentalparticipations. Indicia of a formal conference often include but are not limited to registration,registration fees, a published substantive agenda, and scheduled speakers or discussion panels.Individual events may qualify as conferences without meeting all of the indicia listed above, butwill generally meet some of them. Please note that some training events may qualify asconferences for the purposes of this guidance, particularly if they take place in a hotel orconference center.3. Local Conferences. Events within the local duty location that do not require advance travelauthorization may also qualify as a conference for the purposes of this guidance if the eventexhibits other key indicia of a conference, especially the payment of a registration, exhibitor,sponsor, or conference fee.4. Exemptions. For the purposes of this guidance, the exemptions below apply and these types ofactivities should not be considered to be conferences even if the event meets the general definitionof conference in section 1 above. Even where an event is considered exempt from this guidance,organizations are expected to continue to apply strict scrutiny to DoD's participation to ensure thebest use of government funds and adherence with not only all applicable laws and policy, but theunderlying spirit or principles, including ensuring that only personnel attend events that have amission-essential need to do so, that expenses be kept to a minimum, and that participation in anyassociated social events be limited and restrained to the greatest degree practicable to avoid theappearance of impropriety. Exemptions from this guidance should be granted sparingly and onlywhen events fully meet the definition and intent of the criteria below:12

a. Meetings necessary to carry out statutory command and staff oversight functions. Thisexemption would include activities such as investigations, inspections, audits, or non-conferenceplanning site visits.b. Meetings to consider internal agency business matters held in government/militaryfacilities. This exemption would include activities such as meetings that take place as part of anorganization's regular course of business, do not exhibit indicia of a formal conference as outlinedabove, and take place in a government/military facility.c. Meetings necessary to carry out planning or execution of operational or operationalexercise activities or pre-deployment, deployment, or post-deployment activities. This exemptionwould include activities such as planning and preparation for, as well as execution of, war games,military exercises, and operational deployments.d. Bi-lateral and multi-lateral international cooperation engagements that do not exhibitindicia of a formal conference as outlined above, focused on diplomatic relations. Thisexemption would include activities such as International Military Education and Training events,Traditional Commander' s Activities, and other regional assistance programs. It would alsoinclude the activities ofthe Department's Regional Security Centers that do not exhibit indicia ofa formal conference as outlined above.e. Formal classroom training held at government/military facilities. This exception wouldinclude activities such as regular courses of instruction or training seminars at the War Colleges,National Defense University, Judge Advocate General School, or Defense Acquisition University.f. Change of command, award, funeral, or other such ceremonies held ingovernment/military facilities.g. Events where the primary purpose of DoD' s participation is military recruiting and/ormilitary recruitment advertising.13

ATTACHMENT 3DEFINITION OF CONFERENCE COSTS1. Conference Expenses. The total expenses of a conference include all direct and indirectconference costs paid by the Department, in accordance with 41 CFR 301-74.2. Total expensesmust include expenses paid by all Components within the Department, not just a singleorganization. For the purposes of this guidance, conference expenses include, but are not limitedto:a. Authorized travel and per diem expensesb. Hire of rooms for official businessc. Audiovisual and other equipment usaged. Computer and telephone access feese. Light refreshments or other food and beveragef. Printingg. Registration, exhibitor, sponsor, or conference feesh. Ground transportation and/or parking fees1. Outlays for conference preparation and planningJ. Speaker feesk. Administrative expenses2. Exemptions. For the purposes of this guidance, the following expenses are exempted:a. Federal employee time for conference preparation and planningb. Federal employee time for attendance at the conference or en routec. Security costs to ensure the safety of attending governmental officials14

3. Revenue. Revenue is all direct or indirect conference costs reimbursed to the Department. Forthe purpose of this guidance, revenue includes, but is not limited to:a. Registration fees collectedb. Exhibitor fees collectedc. Sponsor fees collected4. Total Conference Cost. Total conference cost should be the net value of any fees or revenuereceived by the Department through the conference.5. Prohibited Conference Expenses. Entertainment-related expenses are expressly prohibited aspart of DoD conferences.15

ATTACHMENT 4REPORTING1. Annual Reporting. In accordance with OMB's memorandum, the following data will bereported publically on an annual basis for conferences which the Department hosts where the totalexpenses associated with the conference are in excess of $100,000. This data will be captured byeach DoD Component and consolidated by the Deputy Chief Management Officer. Additionalguidance will be issued by the Deputy Chief Management Officer, as necessary:a. The name of the conferenceb. The Component hosting the conferencec. Total conference expenses incurred by the agency for the conferenced. The location of the conferencee. The date ofthe conferencef. A brief explanation how the conference advanced the mission of the agencyg. The total number of individuals whose travel expenses or other conference expenseswere paid by the agencyh. Copies of any waivers granted for conferences with a total cost in excess of $500,0002. Quarterly Reporting. The following information will be reported to the Deputy Secretary ofDefense on a quarterly basis for all conferences which the Department hosts or attends regardlessof cost. This data will be captured by each DoD Component and consolidated by the DeputyChief Management Officer. Additional guidance will be issued by the Deputy Chief ManagementOfficer, as necessary:a. The name of the conferenceb. The Component or non-DoD entity hosting the conferencec. The approval authority who granted approval for the conference to proceed16

d. Total conference expenses incurred by the Department for the conferencee. The location of the conferencef. The date of the conferenceh. A brief explanation how the conference advanced the mission of the agencyi. The total number of individuals whose travel expenses or other conference expenseswere paid by the Department.j. Copies of any waivers granted for conferences with a total cost in excess of $500,000k. The name of any non-Federal entity used for conference planning1. Whether the conference involved spousal travelm. Whether the conference involved co-sponsorship with a non-Federal entityn. Whether the conference involved the use of a no-cost contract17